Step 1

Preheat oven to 400F/205 C

Step 2

Pour the sweetened condensed milk into an oven-safe dish and cover with a lid or aluminum foil.

Step 3

Place the dish in a high sided baking pan. Pour hot water in the baking pan to the level of the condensed milk in the dish.

Step 4

Bake for 1 to 1 1/2 hours until caramel coloured.

Step 5

You will notice when you stir the dulce de leche that it looks curdled, and resembles chunky peanut butter. This is resolved easily by blending with an immersion blender or by letting it cool and blending it in a traditional blender. Once the dulce de leche is smooth, it's ready to serve!